Jersey agrees tax package with the UK

States of Jersey:

Following consultation with the Island’s finance industry, Jersey has agreed a package of tax measures with the UK Government that reflects the Island’s special relationship with the UK and its long-standing commitment to join in the global action to combat tax evasion.

The package that has been agreed with the UK comprises:

• The main body of an intergovernmental agreement ( IGA) that closely follows the FATCA IGA being negotiated with the US (aside from the jurisdiction specific annexes);
• An alternative reporting arrangement for UK residents who are categorised as non-domiciled for tax purposes (res non-doms) which will be included in an annex to the IGA and which will be finalised to the same timetable as the IGA currently being negotiated with the US the main body of which has already been initialled with the US authorities;
• A disclosure facility, full details of which will be published shortly, which will allow investors with assets in Jersey to come forward and regularise their past tax affairs prior to information on their accounts being automatically exchanged.

In addition to the package, the UK have indicated that they are happy to consider a possible renegotiation of the current Double Taxation Agreement between the UK and Jersey.

Senator Gorst said: “We have a centuries-old special relationship with the UK and this package puts beyond doubt our long-held commitment to ensuring that the Island is not used for tax evasion by UK resident tax payers. Our internationally recognised reputation for being transparent and well regulated is a key strength of our financial services sector, and what we have now agreed with the UK will serve to further reinforce this message. It is also in the Island’s long-term interests to keep in step with the global direction of travel towards greater transparency.”

Jersey Finance:

The States of Jersey has today announced details of an agreement with the UK on a package of tax measures, widely referred to as ‘UK FATCA’. 

In response to this announcement, Jersey Finance notes that this package of tax measures is consistent with those agreed with Guernsey and the Isle of Man and clearly reflects Jersey’s political objective to remain closely aligned to the UK and to act as a leading participant in the development of standards to combat tax evasion.

Commenting on the package, which comprises three main parts, Heather Bestwick, Deputy CEO of Jersey Finance, said: "The outline package agreed between Jersey and the UK is largely as expected and as noted by the Chief Minister, Senator Gorst, reflects Jersey’s strong relationship with the UK and the island’s international reputation for high standards of regulation. The extensive consultation process that we ran on behalf of government with our member firms raised a number of points that will be important to capture in the detail of the final agreement and we are encouraged to see that there is reference to jurisdiction specific annexes forming part of the intergovernmental agreement (IGA)."

Ms Bestwick added: "One of the key benefits of this announcement is the degree of certainty that it offers the industry and our focus from this point forward will be to continue to work closely with government on the detail of each element of the agreed package and to support our members in quickly and clearly communicating these measures to Jersey’s global financial services client base."